Why is real estate news always bad even when prices are rising?

By
Real Estate Broker Owner with Catarra Real Estate, Inc CA BRE #01191946

I'm a news junkie. However it seems, for whatever reason, that no matter what real estate news article I read the bias is ALMOST ALWAYS negative.  It's as if the reporters out there can't find a bright spot anywhere.  If I were a consumer, it would be really hard to justify buying or selling a home when, based on the news, it appears that prices all across the country continue to drop and there's no hope in sight.  Foreclosures subsiding?  No!  Short sales easier?  No!  Prices rising?  No, no, no!!!  But here's the thing - that's not true.  In many places foreclosures are subsiding, prices are rising, and short sales are easier.

We need a Crusade of Truth.  The truth is that in the San Francisco Bay Area (it's own little real estate world) and Silicon Valley in particular, we have many markets up this year.  Somes of these micro-markets are up substantially in both sales and prices.  So, why is it that when I read about real estate sales in the local paper or on the TV all I hear is "Silicon Valley prices continue to drop"?  The truth is obscured by the reporters who only focus on sensationalizing what's happening.  Plus, I think they all can't seem to be happy.  It's not in their blood.  Are you on board with my Crusade of Truth?  I hope so.  The recent contest on Activerain asked members to talk about the "Real Estate Recovery".  In those articles were plenty of signs that markets all over the country are actually doing fine.

There was a report by NAR that presented recent dip in July sales and prices but put it in perspective by showing that year-over-year sales and prices were up and that overall in 2011 these figures are up.  WOW!!  A news report that is actually, sort of, positive.  They put the short term, minor bad news into perspective and showed that, in fact, the real estate market is doing better.  Did that news get coverage from all the TV stations and other media outlets?  No.  It got drowned out by more bad news.

Here's what I propose we do with the media:

  • Find the bright spots in the local market
  • Call the reporter(s) who write for your local paper or TV news
  • Tell the reporters about the bright spots and back them up with facts (MLS data)
  • Make sure you get quoted

We have a million members in NAR and over 200,000 people here on Activerain.  It's time we got the truth out there.  The public needs to know about the bright spots.  If they do, the sentiment on buying and selling will change.  Consumers need something good to pull them out of the funk the media has put them in.  Let's do it!

UPDATE:  I sent messages to 4 local TV stations and several local reporters asking them to do a report or series on the bright side of the local real estate markets.  More news to follow!

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Re-Bloggged 2 times:

Re-Blogged By Re-Blogged At
  1. Scotti Jowers 08/22/2011 03:47 PM
  2. Sherri Wellborn 08/22/2011 03:55 PM
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Topic:
Real Estate General Information
Location:
California Santa Clara County
Groups:
BananaTude
Cosmic Cow Pie...The Rome Way
HyperLocal Neighborhood and Community Posts
Realtors®
San Francisco Bay Area Real Estate
Tags:
crusade of truth
real estate news
positive
good news
real estate recovery
news media
reporting
silicon valley

Comments 70 New Comment

Rainmaker
333,351
Ty Lacroix
Envelope Real Estate Brokerage Inc

Bryan, and we wonder why the consumer gets confused when we tell them that actually the market is not that bad!

Ty

August 24, 2011 11:38 AM
Rainmaker
1,165,850
Gene Riemenschneider
Turning Houses into Homes
Home Point Real Estate

For many people price drops are not bad news. It is all in how you portray it.  Good news does not sell.

August 24, 2011 03:34 PM
Ambassador
1,070,690
Bryan Robertson
Innovator, Writer, Speaker
Catarra Real Estate, Inc

Bad news does sell but I think good news could get a lot of traction.  Would anyone want to participate in a new Youtube channel focused on broadcasting positive market reports?  I think if we created a new outlet on Youtube it would get a lot of hits and could get the attention of the mass media outlets resulting in even more coverage.  To work, agents from all around the country would have to agree to be interviewed and generate reports.

Any takers?

August 24, 2011 04:26 PM
Rainmaker
144,106
Dale Taylor
Realtor = Chicago Illinois Homes Townhomes Condos
Re/Max All Properties New Lenox Illinois

Press releases are a powerful tool to encourage media to report positive information about real estate.  You are on the right track Brian with your idea.  I suggest you just get the youtube thing started and others will jump on board!

August 24, 2011 09:11 PM
Anonymous #70
Anonymous
a better way

Unfortunately messages of good news, love, common good do not posess the 'take action' incentive as those dripping in FEAR! FEAR has always been to lowest common demoninator to get a herd of humans to move in the same direction. Even the most hate inspired cultures take pride in saying, "the enemy of my enemy is my friend." In a dumbed down society, do you really want to spend much time with the herd? Why would you choose to wallow in the swill being sold to the herd?

Recognize the effect such fear mongering has on the citizen and provide a well defined solution.
Recognize the challenge the herd has in obtaining accurate and timely information and provide a wall defined solution. Your profit will not be found in the herd but in the action of the informed. As a pro, you need to take great care upon those things on which your mind and spirit feed. Then being well nurished, go into your farm and share the good news.

August 31, 2011 11:59 AM
Ambassador
1,070,690

Bryan Robertson

Innovator, Writer, Speaker
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Additional Information

Read about news, reviews, and commentary about current events and trends in the real estate industry. I also write about local markets including Silicon Valley and my hometowns - Los Altos and Saratoga.